IMPACT UPDATE 2017

IMPACT UPDATE
2017

CONTENTS

03

04

30

RSPO
IN BRIEF

RSPO
IN 2017RSPO PRINCIPLES &CRITERIA REVIEW

03

06
08
11

32
33
36
37

About RSPO Annual Impact
Updates

14
14
16

18
21
28

Membership
Certification Progress
Smallholder Certification andInclusion
New Planting Procedure Update
Remediation and Compensation
Procedure
GHG Emissions Reporting andProjection: PalmGHG Calculator
and New Development GHG
Calculator
Complaints Procedure
Market OutreachSEnSOR Programme

Background
Review Process Overview
P&C Review Task ForceRSPO Certification Systems:
Enhancing Quality, Credibility
and Oversight

Photo credit: New Britain Palm Oil Limited

Photo credit: RSPO & Jonathan Perugia

Photo credit: RSPO & Jonathan Perugia

Cover photos credit: New Britain Palm Oil Limited & RSPO/Jonathan Perugia

02 RSPO IMPACT UPDATE 2017

Photo credit: RSPO & Jonathan Perugia

38
BASE DATA, GLOSSARY& REFERENCES
40
43
45
47

Base Data and Notes
Glossary
References
Contact the RSPO

Photo credit: RSPO & Jonathan Perugia

RSPO
IN BRIEF

Our vision is totransform markets tomake sustainable palm oil
the norm
The Roundtable on Sustainable Palm Oil (RSPO) is a multi-stakeholder not-forprofit organisation that works to advance the production and use of sustainable
oil palm products. We develop and implement global standards for sustainablepalm oil through open dialogue and cooperation with every stakeholder in the
supply chain. RSPO members represent the seven key sectors of the industry: oilpalm growers, palm oil processors and traders, consumer goods manufacturers,
retailers, banks and investors, environmental or nature conservation NGOs andsocial or development NGOs.

About RSPO Annual Impact Updates
The RSPO publishes a full Impact Report every two years. We have also issued
annual Impact Updates since 2015 to ensure that all stakeholders stay informed ona yearly basis. This Impact Update covers our progress and activities from
1 July 2016 to 30 June 2017, and includes a dedicated section on the RSPO
Principles & Criteria Review initiated during this period. As this Impact Updatebuilds on and makes reference to the RSPO 2016 Impact Report, which contains amore extensive overview of our latest activities and initiatives, it is recommended
to read both in conjunction. All RSPO key documents, including Impact Reports,
can be accessed at www.rspo.org/key-documents.
The next full RSPO Impact Report is scheduled for publication in Q4 of 2018.
Photo credit: RSPO & Jonathan Perugia

RSPO IMPACT UPDATE 2017

03

RSPO
IN 2017
06
08
11
14
14
16

18
21
28

Membership
Certification Progress
Smallholder Certification andInclusion
New Planting Procedure Update
Remediation and Compensation
Procedure
GHG Emissions Reporting andProjection: PalmGHG Calculator
and New Development GHG
Calculator
Complaints Procedure
Market OutreachSEnSOR Programme

04 RSPO IMPACT UPDATE 2017

RSPO IMPACT UPDATE 201705

Photo credit: RSPO & Jonathan Perugia

MEMBERSHIP

3,422

As at 30 June 2017, the RSPO has a total of 3,422 members across 89 countries - a
16% increase since the close of the last reporting period (30 June 2016). Membershipin palm oil buying sectors and markets has continued to grow steadily, with a
combined increase of 14% in consumer goods manufacturers and palm oil traders andprocessors, which together make up 81% of our ordinary membership.

members in 89 countries,
481 more (+16%)
than in 201645%
are ordinary members and
55% are affiliate or supply chain
associate members

10%increase in grower membership(within ordinary membership)since the previous reporting
period in 2016170of the 1,551 ordinary
members are growers

Photo credit: RSPO & Jonathan Perugia

The United Kingdom and Germany continue to have the largest RSPO memberships,
but, with a 62% increase in this reporting period, the United States is catching up fast.
Approximately 88% of these new members are Supply Chain Associates or Consumer
Goods Manufacturers. Factors contributing to this growth include the July 2016
appointment of a United States-based RSPO representative to support both existingand prospective RSPO members, as well as a number of drivers that are pushing theimplementation of corporate sustainable sourcing policies (See page 26 for more
information).
Meanwhile, global grower membership has increased 10% to 170, out of a total of
1,551 ordinary members. While the majority of these producers are located in Asia,
Latin America remains the most diversified region in terms of countries with grower
members.

06 RSPO IMPACT UPDATE 2017

MEMBERSHIP

Ordinary Membership(1,551 as at 30 June 2017)

Top Ten Countries of RSPO Membership(Total membership: 3,422 as at 30 June 2017)

412

403

324

212

179

146

137

131

124

115 1,239

Ordinary
membership
1,551 as at
30 June 2017

Consumer Goods Manufacturers, 728
Palm Oil Processors and/or Traders, 524
Oil Palm Growers, 170
Retailers, 64

Social or Development Organisations(Non-Governmental Organisations), 12

ly
Fr
an
ce
M
al
ay
si
Be a
lgi
um
Au
st
ra
lia
In
do
ne
sia
Ot
he
r

Ita

Banks & Investors, 14

Ki Un
ng it
do ed
m
Ge
rm
Un
an
y
ite
d
St
at
Ne
es
th
er
la
nd
s

Environmental or Nature Conservation
Organisations (Non-Governmental
Organisations), 39

RSPO IMPACT UPDATE 201707

CERTIFICATIONPROGRESSAs at 30 June 2017, plantations
covering a total of 3.2 million hectares
across 16 countries are RSPO certified,
an increase of 14% since the lastreporting period
Overview of Global Certified
Palm OilAs at 30 June 2017, plantations coveringa total of 3.2 million hectares across 16
countries are RSPO certified, an increaseof 14% since the last reporting period.
The RSPO welcomes this positive turnfollowing the reported 14% decreasein global certified area noted in the2016 Impact Report, which was largely

attributed to the temporary suspension
and self-withdrawal from certification of
two large Malaysian producers. In thiscontext, we are especially pleased tohighlight that certified area in Malaysia
has also made a significant rebound,increasing 25% since 30 June 2016.
Indonesia and Malaysia still top thelist of countries for total certified
hectarage, but progress has been madein many regions. Latin America saw an
11% expansion in certified area, whilecertified area in Africa grew by 22,773
hectares - a relatively small amountcompared to other regions, but a 70%
growth in local terms. Gabon and
Ecuador also joined the list of countries
with certified sustainable palm oil
production.

Certified Area by Region

Total Certified Area as at 30 June 2016
Total Certified Area as at 30 June 2017

(Total: 3,236,429 ha as at 30 June 2017)

1,547,241
1,719,606

Indonesia

756,595
945,619

Malaysia

258,180
285,687

235,956
230,361

Latin America

Rest of
Asia-PacificNote to data: All figures are inclusive of certified area for smallholders certified under group certification.

08 RSPO IMPACT UPDATE 201732,38355,156AfricaCERTIFICATIONPROGRESS

A total of 189,777 hectares of High Conservation Value (HCV) area has been identified and is currently managed by RSPO members,
an increase of 21% since the last reporting period. Some noteworthy trends are emerging at a regional level, including in Africa
where identified HCV area increased by 4,323% (13,405 hectares). Significant gains have also been made in the Asia-Pacific region,
with a 152% (8,399 hectares) increase in Malaysia, and a 228% (5,864 hectares) increase across the rest of the region (not includingIndonesia).

RSPO NEXTRSPO NEXT reached a significant milestone in April
2017 when DAABON Group became the first oilpalm grower in the world to achieve full RSPO NEXTcertification. The Colombia-based agribusinessunderwent a six-day audit during which their four
palm oil estates in northern Colombia were reviewed
for compliance with RSPO NEXT requirements. The
certification also covers 122 smallholders that supply
to the Group’s mill. The Group’s oil palm plantations,which cover approximately 9,950 hectares, have beencertified against the RSPO P&C since 2010.
RSPO NEXT is a voluntary initiative that allows
producers to be recognised for their leadership in
implementing best practices under key environmental
and social categories. It requires compliance to a
supplementary set of criteria, building on the existing
RSPO Principles & Criteria (P&C) evaluation, including:

Regional Outreach
Latest Activities and Developments
in Latin America
The RSPO continues working to support
the growing number of producer
members within and outside of Asia.
Much of our effort in the last few years
has focused on Latin America, the second
largest palm oil producing region in theworld. As at 30 June 2017, there are
33 RSPO grower members across ninecountries in the region, and 24 mills are
certified across six of these countries.

No Deforestation, No Fire, No Planting on Peat,
Reduction of GHGs, Respect for Human Rights andTransparency. These are applicable organisation-wide,
including investments and joint ventures, as well as in
the organisation’s wider supply base.
The RSPO welcomes DAABON Group’s achievement. It
demonstrates the great momentum achieved by RSPO
members in Latin America, where there is continued
growth in the production of certified sustainablepalm oil (CSPO). The RSPO will continue promoting
and supporting the adoption of RSPO NEXT among
retailers, manufacturers and other downstream
players, and building awareness about the initiative ingrower and other stakeholder groups.
The RSPO NEXT requirements can be accessed atwww.rspo.org/certification/rspo-next.

In August 2016, we hosted the sixth RSPO
Latin American Conference, which washeld in Guatemala in conjunction with
the Guatemalan Palm Growers' Guild(Grepalma) C//PAL Conference. The event
brought together several key stakeholders
that are seeking to secure a sustainablepalm culture in Latin America throughresponsible agricultural, social andenvironmental practices.
A key development that took place during
the conference was the Ecuadoriannational government's official submissionof interest to pilot a jurisdictional
approach to RSPO certification within

selected areas of the Ecuadorian Amazon.
The Ecuadorian government establishedcoalitions with palm oil companies andnon-profit organisations to support the
programme. The RSPO was engaged
to help facilitate activities and provide
technical assistance where needed.
To sustain the momentum, the RSPO andWWF co-hosted a workshop in Quito in
March 2017, where growers, NGOs andgovernment representatives signed acommitment to continue the processof RSPO jurisdictional certification.
A steering committee was formallyestablished in June 2017 to lead thisprocess.

RSPO IMPACT UPDATE 201709

CERTIFICATIONPROGRESSThe programme in Ecuador is uniquein terms of its synergy with existing
initiatives. The Ministry of Agriculture
and Environment has granted accessto maps that identify areas suitable forpalm oil production, and a partnershipwith the United Nations Programme on
Reducing Emissions from Deforestation
and Forest Degradation (UN-REDD) is
focusing on developing strategies to
produce sustainable palm oil with zerodeforestation. Workshops are also being
held to introduce sustainability as aconcept to Ecuadorian smallholders andto help build their capacity.
The RSPO strongly commends andsupports this initiative by the Ecuadoriangovernment. It carries many potential
benefits for Ecuador and is aninspiration for other countries to pickup the baton. We are developing ourcertification system to accommodate thejurisdictional approach and we continue
to support and learn from various RSPO
jurisdictional certification initiatives andpilots, including programmes in Sabah(East Malaysia) and Central Kalimantan(Indonesia).
The RSPO Outreach Programme
In 2015, the Government of Sabah called
for all palm oil stakeholders in Sabah to
produce 100% CSPO by 2025. This led
to one of the world’s first jurisdictional
commitments to sustainable palm oil
production. In continued support ofthis commitment, the RSPO hosted an
event in Sandakan in October 2016 aspart of the RSPO Outreach Programme,
which seeks to raise awareness aboutsustainable palm oil production. The
event created a platform for nearly 100
palm oil sector stakeholders to discussand encourage further commitments to
CSPO.

10 RSPO IMPACT UPDATE 2017

Similar programmes took place in Guatemala (August 2016), Ghana (September 2016),
and Indonesia. The event in Ghana, held at the African Sustainable Palm Oil Conference,
was especially noteworthy given the growth of investment in Africa's palm oil sector.
The existence of the RSPO presents an opportunity for Africa's palm oil industry to
get started on a sustainable footing. In this context, the Accra conference was a great
success, gathering 300 participants from different African nations to discuss key topics,
including how businesses can adopt best sustainability practices, and how smallholders
can be empowered through knowledge and access to global palm oil supply chains.
The Outreach Programme in Indonesia has taken on the form of a series of RSPORoadshows organised in six producing provinces: Jambi, Riau, East Kalimantan, South
Sumatra, Central Kalimantan, and North Sumatra. Nearly 1,200 participants attended,
comprising of oil palm growers, palm oil processors and traders, local community andcivil society organisations, government representatives, academics and media. The
objective of the programme was to act as a forum for the latest information on thedevelopments and dynamics of the palm oil industry in Indonesia, and to strengthen
stakeholder understanding of sustainable palm oil development in the region.
Engagement with Local Communities and Intermediary Organisations
The RSPO believes that communities, local NGOs, and other intermediary organisations(IMOs) are important stakeholders, and we seek avenues to inform and improve
capacity of these parties to ensure their expertise, concerns, and needs are fully taken
into account.
At the end of 2016, we partnered with theInstitute for Policy Research and Advocacy(ELSAM) to set up a community and Civil
Society Organisations (CSO) Engagement
Programme in Indonesia. The programmeaims to secure informed and interactive
engagement with communities throughIMOs (e.g. trade unions, women’s groups,
religious organisations), and has been
implemented in several areas including
Sumatra, Kalimantan, Sulawesi andPapua. Incorporated in the activities is a
capacity building programme involving
representatives of local communities,
labourers, farmers, women’s groups and
CSOs throughout the country.

In March 2017, growers,
NGOs and government
representatives
in Ecuador signed
a commitment tocontinue the processof RSPO jurisdictional
certification for selectedareas of the EcuadorianAmazon.

SMALLHOLDER CERTIFICATION
AND INCLUSION

Growth in Smallholder
Certifications 2017

Ten independent smallholder groups
are certified in total, representing
2,202 independent smallholders acrossThailand, Malaysia and Indonesia.

By mid-2016, smallholders were
producing 40% of the world’s palm oil.
Supporting these farmers to transition tomore sustainable practices is therefore
a priority for the RSPO, as we seek tomake sustainable palm oil the norm. Our
work with smallholders has primarily
focused on facilitating RSPO certification.
When it is accessible and workablefor smallholders, certification has thepotential to increase productivity, income
and access to new markets.

Overall, there has been a 12% decreasein the number of certified independent
smallholders since the last reporting
period, and more specifically, a 38% and
25% decrease in certified independent
smallholders in Indonesia and Thailand
respectively. This decrease is explained by
the licence expiry of seven independent
smallholder groups in Indonesia andThailand during the reporting period.

The total certified area for independent
smallholders under group certification
as at 30 June 2017 is 11,594 hectares.

More positively, the number of certified
independent smallholders in Malaysia
has doubled. Furthermore, by combining

Number of Independent Smallholders
Under Group Certification
349

658

658

810

501

The total certified
area for independent
smallholders undergroup certification
is 11,594 hectares
as at 30 June 2017.
The number ofcertified independent
smallholders in
Malaysia has doubled.

Total RSPO Smallholders(As at 30 June 2017)(2012-2017)0

figures for scheme and independent
smallholders, we see that the total
number of RSPO certified smallholders
continues to grow (see below).

As at 30 June 2012

2016

2017

109,415

139,123

As at 30 June 2013
As at 30 June 2014
As at 30 June 2015
As at 30 June 2016
As at 30 June 2017

Number of RSPO smallholders

Indonesia
0

72

108

142

(schemed and independent)

350

700

423

423

423

1,151 1,336 1,001

257,649 ha 333,345 ha

Total smallholders’ RSPO certified area

Malaysia

Thailand(schemed and independent)

RSPO IMPACT UPDATE 201711

CERTIFICATIONPROGRESSIn August 2016, we announced that theindependent smallholder group, Sapta
Tunggal Mandiri (STM), had achieved
RSPO certification. STM consists of morethan 2,700 independent smallholders
and covers 5,366 hectares in South
Sumatra Province, Indonesia, making
it the world’s largest group of certified
independent smallholders. However,their data is not included for either 2016or 2017 due to licence activation andexpiry dates falling just outside of thedata extraction dates used for reporting.1
STM's certification, which received
support from Wilmar International
Limited’s subsidiary PT Tania Selatan
and financial assistance from the RSPO
Smallholder Support Fund (RSSF),
represents a milestone achievement.
It demonstrates the impact that canbe achieved through the commitment
of RSPO members and the success of
RSPO structures (such as the RSSF) in
supporting small producers.

The RSPO is also funding one of thelargest certification programmes ever tobe conducted on behalf of smallholders.
Thanks to this funding, Solidaridad West
Africa-Côte d’Ivoire will be implementing
a group certification project for 5,000
Ivorian smallholders in Africa’s thirdlargest palm oil producing country,
within the next three years. The kickoff workshop was held in Abidjan in
December 2016.

RSPO Smallholder
Strategy Update
Despite the progress made over thereporting period, certification remains
challenging for many smallholders. They
often work in community clusters withlimited access to expertise, training
and infrastructure - all key footholds
for engaging in responsible agricultural
practices. The RSPO has alreadyestablished several structures including
working groups, funds, and approaches

to address these issues (see RSPO Impact
Report 2016, pages 41 - 44). Our workand experiences continue to highlightareas where further strategic efforts areneeded.
Recognising a need for a change incurrent practices and approaches toimprove smallholder inclusivity in the
RSPO system, we began collecting
stakeholder feedback in 2016 to informour development of a comprehensive
smallholder strategy. The document,
now in its complete form, was approvedby the RSPO Board of Governors in June
2017.

The RSPO Smallholder
Strategy was finalised
during the reporting
period with the aim
to create a supportive
environment forsmallholders to achievesustainable livelihoods.

Photo credit: RSPO & Jonathan Perugia
H. Narno, Group Manager of Asosiasi Petani Sawit Swadaya AMANAH together with his wife, Ibu Wanti. Asosiasi Petani Sawit Swadaya AMANAH was the first independent
smallholder group to be RSPO certified in Indonesia. Narno has been leading the group since its inception, and is also an inspirational figure in the work being carriedout to promote sustainable palm oil among smallholders in Indonesia.

1

Including STM’s figures for 2017, we would see a near opposite trend—an estimated 97% growth in total number of certified independent smallholders between the 2016
and 2017 reporting periods. Total smallholders' RSPO certified area would amount to approximately 338,711 hectares.

12 RSPO IMPACT UPDATE 2017

CERTIFICATIONPROGRESS

Underpinned by the broad philosophy of smallholder inclusivity, the aim of the RSPO Smallholder Strategy is to create a supportive
environment for smallholders to achieve sustainable livelihoods. It contains Guiding Principles to direct implementation, highlights
strategy fundamentals, and supports decision-making. It presents intermediate outcomes, outputs and assumptions, and includes
an implementation plan. The objectives, Guiding Principles, and next steps for the strategy implementation are outlined below.

RSPO IMPACT UPDATE 201713

NEW PLANTINGPROCEDURE UPDATEThe RSPO New Planting Procedure (NPP) provides guidance on how and under what conditions new oil palm plantings developed
after 1 January 2010 should be carried out. The NPP was first introduced in 2009 and was subsequently updated in 2015. The updated
version came into effect in January 2016 with a six month grace period before becoming compulsory in July 2016 (See RSPO Impact
Report 2016, pages 36 - 37).
The RSPO NPP is a credible and quality-driven process. Each NPP submitted must undergo verification by an accredited certificationbody before a notification is posted on the RSPO website for a 30-day public consultation. In addition, HCV assessments must be
conducted by a High Conservation Value Resource Network (HCVRN) licensed assessor.
NPP Highlights

1,486,873 hectares
across 13 countries
were subject to NPPs
as at 30 June 2017.

13 NPP notifications
were approved
covering 100,364
hectares in Indonesia,
Papua New Guinea,
Mexico, Malaysia,
Gabon, Guatemala,Nigeria and Togo.

Mexico and Togo
joined the list of
countries that haveapplied for NPP, adding
a combined area of
5,163 hectares.

Under the 13
notifications approved
during the reporting
period, 41,013 hectares
are proposed for HCV,
bringing the total HCV
area under the NPP to265,153 hectares (as at
30 June 2017).

REMEDIATION AND
COMPENSATION PROCEDURE
The Remediation and Compensation Procedure (RaCP) was launched in 2014, to address
land clearances undertaken without prior HCV assessments since November 2005.2
The procedure requires growers to calculate environmental liabilities through a Land
Use Change Analysis (LUCA), and to carry out onsite or offsite remediation on affectedsites or parties (See RSPO Impact Report 2016, page 39). Compensation liabilities
are determined using a matrix combining vegetation coefficients, land clearance
periods, membership status, and areas requiring environmental remediation. The Final
Conservation Liability (FCL) is expressed in hectares.
As of 30 June 2017, a total of 703,413 hectares of non-compliant land clearance (NCLC)
has been disclosed by 253 management units, representing 100% full disclosure fromRSPO members that own or manage plantations. Some growers have submitted revised
standard operating procedures (SOP) to the RSPO for public disclosure,3 to demonstrate
their commitment to prevent further non-compliant land clearing.

2

3

A total of 703,413
hectares of
non-compliant land
clearance has been
disclosed by 253
management units,
representing 100% full
disclosure from RSPO
members that own ormanage plantations.

The final draft of the RSPO RaCP, endorsed by the BoG in November 2015, can be downloaded at www.rspo.org/news-and-events/announcements/update-on-theendorsement-of-the-rspo-remediation-and-compensation-procedures-racp.
This is optional. Members not wishing to submit their revised SOP to the RSPO must submit a declaration of SOP verification by an accredited certification body at thetime of the liability disclosure.

14 RSPO IMPACT UPDATE 2017

REMEDIATION AND
COMPENSATION PROCEDURE

To date, 29% of the LUCA reports submitted have been reviewed. The aggregated FCL of the disclosed NCLC is 68,174 hectares.
The following tables present the disaggregated NCLC and FCL data by country and by region.4 It is worth noting that FCL is about 10%of the NCLC total. This is because most of the cleared areas were open developed and/or degraded grass or shrub lands.
At the time of reporting, several RSPO members are preparing remediation and compensation plans having had their concept notes
approved by the compensation panel.

NCLC AND FCL DATA BY COUNTRY (AS AT 30 JUNE 2017)
Country

NCLC (Ha)*FCL (Ha)**

Indonesia

581,924

55,628

Malaysia

61,414

9,048

Colombia

21,386

2,015

51

39

Guatemala14,991

406

Honduras

8,703

183

Ecuador

7,417

592

Nigeria

2,048

88

Ghana

2,432

168

Côte d’Ivoire

1,887

0

Dominican Republic773

3

Costa Rica

387

3

703,413

68,174

NCLC (Ha)*FCL (Ha)**

Latin America

53,7083,242

Africa6,367

256

643,338

64,676

BrazilTotal

NCLC AND FCL DATA BY REGION (AS AT 30 JUNE 2017)
Regions

Southeast Asia
* NCLC: Non-compliant land clearance or land clearance without prior HCV assessment since November 2005** FCL: Final Conservation Liability

4

RaCP data, including NCLC and FCL figures, will be included in future RSPO Impact Reports and Impact Updates.

RSPO IMPACT UPDATE 201715

GHG EMISSIONS REPORTING AND
PROJECTION: PALMGHG CALCULATOR AND
NEW DEVELOPMENT GHG CALCULATORThe RSPO PalmGHG Calculator wasdeveloped by the Greenhouse Gas
Working Group 2 (GHG WG2), and later
improved by the Emission Reduction
Working Group (ERWG), and the New
Development GHG Calculator by the
ERWG. These tools were created for palm
oil producers to estimate and project the
net GHG emissions of current and planned
production activities. The improved
versions of these tools were released
at the end of 2016 for RSPO members
to use to ensure their compliance with
the RSPO P&C related to identifying,monitoring, minimising and reporting
GHG emissions in existing operations andnew developments (See RSPO P&C 2013:
5.6 and 7.8).

and projecting GHG emissions fromoperations, including land use change
GHG emissions of existing operations andnew developments. GHG emissions mustbe publicly reported through annual audit
summary reports and the New Planting
Procedure notifications, which are
published on the RSPO website. Following
this development, PalmGHG emissions
data will be reported in all RSPO Impact
Reports and Updates.

Recognising the challenges of accurate
measurement and monitoring, given
pre-existing knowledge andmethodologies, the RSPO set out a
two-year implementation period in which
growers and millers were required tocommit to promoting best practices inreporting to the RSPO, and after
31 December 2016, to public reporting
against the relevant criteria. It was
during this implementation periodthat the PalmGHG Calculator and New
Development GHG Calculator were
updated and refined based on user
feedback.

The chart below presents mean net GHG
emissions for 2016 (calendar year) for
current operations, based on PalmGHG
Calculator data submitted by RSPO
members. Net emissions are measured
in tonnes of carbon dioxide equivalents(tCO2e) per hectare, per tonne of Crude
Palm Oil (CPO) produced.

As of January 2017, the RSPO PalmGHG
Calculator and New Development GHG
Calculator are required for calculating

Mean Net GHG Emissions from Current Operations Compiled from PalmGHG Data Submitted by
RSPO Members (1 January - 31 December 2016)
Mean Net GHG emissions 2016
Mean Net GHG emissions: 2.52 tCO2e/tCPO (N=322)
Standard deviation: 4.82 tCO2e/tCPO
50.00

Net GHG emissions (tCO2e/tCPO)

40.00

30.00

20.00

10.00

00.00
0

50

100

150

-10.00# of submissions

16 RSPO IMPACT UPDATE 2017

200

250

300

350

GHG EMISSIONS REPORTING AND
PROJECTION: PALMGHG CALCULATOR AND
NEW DEVELOPMENT GHG CALCULATOR
Based on the data submitted by RSPO members, the top threesources of GHG emissions are:
1. Land clearing (depending on land cover prior to clearing).
2. Methane produced from Palm Oil Mill Effluent (POME).
3. Carbon dioxide and nitrous oxide generated by thecultivation of peat soils.

As of January 2017, the RSPO PalmGHG
Calculator and New Development GHG
Calculator are required for calculating
and projecting GHG emissions fromoperations.

New Study: Calculating GHG Emissions fromOil Palm Using PalmGHG
A 2016 study5 published in The Planter (2016)
reviewed GHG emissions calculations for oil palm
cultivation using the RSPO PalmGHG tool6 andpresented findings on the cumulative impact ofthese emissions. The review focused on emissions
generated by the development of new plantings, aswell as those generated across the entire palm oil
production process.
Three scenarios were developed to test the PalmGHG
calculator, each with two variations - with methane
capture and without methane capture:• The first scenario assumed no peat in theconcession, and therefore no development on peat,and no set-aside areas.
• The second scenario assumed the concession isentirely peatland, and thus 100% planting on peat,and no set-aside areas.
• The third scenario assumed no peat in theconcession and zero planting on peat. It also
assumed an extra 2,000 hectares of conservation
area set-aside within the concession.
Key results:• Planting on peat, land conversion and POME
are major sources of GHG emissions in oil palm
development and production, of which peat is thelargest (Gan & Cai 2017).

5
6• Planting 100% of a concession on peat leads toa massive rise in GHG emissions, regardless ofwhether methane capture facilities are in place.
Construction of methane capture facilities can,however, significantly reduce emissions from POME
(Gan & Cai 2017).
• Land conversion is the second largest source of
GHG emissions, but emission levels depend on thetype of land cover converted. Converting land coverwith a higher carbon value will lead to higher GHG
emissions than converting land cover with a lower
carbon value (Gan & Cai 2017).
The results indicate that the calculation of GHG
emissions, including for land use change, is helpful
for identifying major emissions sources. The New
Development GHG Calculator, applying the similar
GHG estimation approach, can assist companies inmaking decisions about where new developments
can take place in accordance with their priorities
and risk tolerance level. Programmes for mitigating
GHG emissions from new plantings can also be
implemented to minimise their overall impact, andshould be incorporated in land use planning.

Calculating GHG Emission in Oil Palm Using PalmGHG by Gan Lian Tiong and Henry Cai was released in 2016, and re-written and published again in 2017 in The Planter.
PalmGHG Calculator version 2.1.1, but modified with some default values from a simplified PalmGHG for criterion 7.8 of the 2013 RSPO P&C.

RSPO IMPACT UPDATE 201717

COMPLAINTSPROCEDURE

Complaints in 2017
All RSPO members are required to adhere
to the commitments set out in the RSPOKey Documents, including the RSPO
Statutes, RSPO Code of Conduct andthe RSPO P&C. We continually evolve
our approach to facilitating solutions tocomplaints submitted on any breachesof these commitments. In this section,
we present data on complaints received
as at June 2017, as well as updates on
the revamped complaints and appeals
procedure endorsed on 14 June 2017.

As at 30 June 2017, 27 complaints wererecorded as either under review or
pending an action plan. Of the 83 cases
handled by the Complaints Panel since2009 (2009 - 2016 data are based on
calendar year), 44 have either beenclosed or are closed for monitoring. Eightnew cases have been recorded in the firsthalf of 2017.
The RSPO Impact Report 2016 noted thatthe average time to close a complaint had
fallen from 685 days in 2015 (based on
full calendar year data) to 312 days (basedon data from the first half of 2016).
Updated for the full calendar year 2016,
this average increased to just 363 days,
and has dropped further to 73 days inthe first half of 2017.
By country, Indonesia has the highest
number of complaint submissions(48 cases), followed by Malaysia (14cases). As in previous years, most of
the submitted complaints are related toFree, Prior and Informed Consent (FPIC)
and High Conservation Value (HCV)
issues.

Complaints Received and Complaints Closed

Complaints Received
Complaints Closed/Closed for Monitoring(2009 - 2017)
0

5 1

4 1

15 7

18 13

2 10

13 11

10 6

8

2009

2010

2011

2012

2013

2014

2015

2016

2017

3

Note to data: Figures for 2009 - 2016 are representative of full calendar years (1 January - 31 December). Figures for 2017 are inclusive up to 30 June 2016.

Complaints by Country

Un

Co

ia

Pe
r

ss

ica

1

Ru

1

u

1

sta
R

1

Ca
m
er
oo
n

ite

d

1

il

a
bi
m
lo
Co

st
ra
l

2

Br
az

2

ia

2

Au

Pa
p

Fr
an

ia
er

18 RSPO IMPACT UPDATE 20173u
Gu a Ne
in w
ea

3

ce

4

Lib

al

ay
sia

14

M

In

do

ne

sia

48

St
at
es

(As at 30 June 2017)0COMPLAINTSPROCEDURE

Complaints by Type(As at 30 June 2017)

Free, Prior and Informed Consent, 36
High Conservation Values related issues, 16
Breach of RSPO Code of Conduct, 6
Human rights violation, 6
New Planting Procedure non-compliances, 3
Credibility of certification body, 3
Others (burning, plasma, pollution), 13

RSPO Complaints and Appeals Procedure
The adoption of Resolution 6f on “Guaranteeing Fairness,
Transparency and Impartiality in the RSPO Complaints System”
by the General Assembly in November 2013, led to the reviewof the RSPO Complaints Procedures by Natural Justice andthe Borneo Conservancy Initiative. Following three public
consultations, the RSPO Complaints and Appeals Procedures(CAP) 2017 were endorsed by the RSPO Board of Governors inJune 2017. The CAP is in effect as of 1 August 2017 for all newcomplaints submitted after this date.
The revised CAP aims to promote and effect the constructive
resolution of complaints and disputes by ensuring that any
alleged breach of the standards and procedures set out in the
RSPO Key Documents is handled and resolved in a fair, impartial
and transparent manner.

Photo credit: RSPO & Jonathan Perugia

Over half of the 83 cases handled by
the Complaints Panel since 2009 have
either been closed or are closed formonitoring. Average time to close acomplaint fell from 685 days in 2015 to
363 days in 2016.

RSPO IMPACT UPDATE 2017

19

COMPLAINTSPROCEDURE

WHAT IS NEW?
Timeline• Ensures coherence and adherence to timeline.

Initialdiagnosis• Secretariat determines if the complaint(s) is against amember.
• Determined if the allegations of fact made in thecomplaint(s), if proven to be true, will constitute a breachof any of the provisions of the RSPO Key Documents.

Urgent action
and interim
measures

Complaints
and Appeals
Procedure

20 RSPO IMPACT UPDATE 2017

• Powers to issue temporary instruction to address anurgent issue raised in a complaint, including a ceaseand desist order (where strictly applicable) or a ‘stop
work’ order.

Appeals
Procedures• Inclusion of an independent appeals mechanism(IAM) mandated to deliberate and deliver final
appeals decisions.

Strengthened
powers ofComplaints
Panel• Powers to suspend and terminate members.
• Powers to issue interim or precautionary orders.
• The Complaints Panel has the discretion to waive
anonymity and engage directly with the parties to thecomplaints via private hearings, onsite investigations,interviews, conference calls, etc.

Separation of
powers• Strict separation of executive powers in handlingcomplaints to ensure independence of the Complaints
Panel, in adherence to the United Nations Guiding
Principles on Business and Human Rights.

Relationshipwith DSF and
CB/AB• Clarity in terms of engagement and relationship with
Dispute Settlement Facility (DSF), certification body(CB) and accreditation body (AB) when cases aretransferred to the related entity.

Protection ofhuman rights,
defenders andwhistleblowers• Powers to warn, suspend, terminate or take urgent action
and issue interim measures against a member if they arefound to have engaged in any form of retaliation, reprisal,
violence, threats, adverse discrimination against, or
applied undue pressure upon, the complainant, affected
communities or their spokespersons or whistleblowers.

MARKET
OUTREACH

Annual Progress on
CSPO Sales
2016 marked a significant turning
point in market uptake. Physicalsales of CSPO increased 33%
between 2015 and 2016 (based on
calendar year data), while sales forvolumes covered by the Book andClaim (B&C) supply chain model
decreased by a dramatic 43%. Thissignificant rebalancing may partly be
explained by a general shift in key
markets where larger companies are
increasingly sourcing physical CSPO.7

While total CSPO sales fell by 9%
to 5.6 million MT between
December 2015 and December 2016,
looking at the change in overallsales in the first half of 2016
(2,858,255 MT) and for the same
timeframe in 2017 (2,995,626 MT),
we see a 5% increase. This is anindication that dip may have beenpart of a temporary trend, and thatthe uptake of CSPO could continue
to increase, especially considering
the various regionally focused efforts
and commitments that have been
taking place over the past year
(see pages 22 - 25).

Sales covered by theBook and Claim supply
chain model havedecreased by 43%,
but physical sales of
CSPO have increased
by 33% between 2015
and 2016, indicatinga general shift in key
markets to increasingly
source physical CSPO.

Annual Sales of CSPO (MT)(2008 - 2016)43
8
84 ,51
2, 5
61
9

83
1
1, ,01
65 0
9,
51

98
4
2, ,13
49 8
5,
27
7

1,
55
2, 1,0
96 1
2, 7
25
6

2,
43
2, 2,2
91 5
7, 8
40
8

2,
75
3, 5,9
42 0
6, 4
79
0

3,
67
1, 4,5
95 5
8, 0
18
1

2009

2010

2011

2012

2013

2014

2015

2016

4,

0

45

2

6
98
,0
24 44
5,
81
3

CSPO Sales through IP, SG, MB
CSPO Sales through B&C

2008

Note to data: All figures are based on full calendar year data (1 January - 31 December).

7

For example, the UK government released its final progress report on the October 2012 commitment to achieve 100% sourcing of CSPO by representatives of key
industries working with palm oil in the UK. The report showed that 89% of CSPO sales within a group of leading UK retailers consisted of physical CSPO, and that
B&C certificates were mainly used where difficulties remained in sourcing Mass Balance or Segregated CSPO in certain derivatives. The report can be accessed atwww.gov.uk/government/publications/uk-statement-on-sustainable-palm-oil-final-progress-report

RSPO IMPACT UPDATE 201721

MARKET
OUTREACH

POWERED BY UTZPalmTrace Launched in 2017
January 2017 saw the relaunch of eTrace as PalmTrace,
introducing key new features to the official traceability
system of RSPO certified oil palm products. The launchalso coincided with the discontinuation of RSPO’s
endorsement of GreenPalm, the previous support
system for the B&C supply chain model.
PalmTrace enables the trading of RSPO certified
volumes across all four supply chain models (Identity
Preserved, Segregated, Mass Balance and Book andClaim), a feature not previously available in eTrace.
Since January 2017, the B&C supply chain model issupported by the trade of RSPO Credits. Mills, crushers,
and independent smallholders offer different types of
RSPO Credits via an online marketplace or through Off
Market Deals. PalmTrace is managed by the not-forprofit organisation UTZ.
We are pleased to report that sales of physical RSPOCSPO have increased by 43% (616,582 tonnes) in thefirst five months of 2017 compared with the same

Fostering Support for CSPO:
Asia and Europe
The past few years have seen criticaladvances toward the uptake of CSPO
in different regional markets. In
2015, a number of countries signed acommitment to achieve 100% sourcingof CSPO for Europe by 2020 (Amsterdam
Declaration).8 We also saw a large
group of retailers and consumer goods
manufacturers in key EU markets taking

8

period last year. In the same timeframe, the RSPO
system has seen a 27% growth in sales of Certified
Sustainable Palm Kernels (CSPK) driven by an increase
in Identity Preserved CSPK sales (up to 950,119 tonnes,
compared to 745,326 tonnes last year). Meanwhile,
sales of RSPO credits (previously GreenPalm certificates)
saw a significant decline of 43% globally. These trends
are in part explained by some larger RSPO members
transitioning from the B&C supply chain model to Mass
Balance or Segregated models, which we consider to bea progressive step.
Increasing sales of certified materials is a positive signal
for RSPO growers that have invested in certifying theirmills and plantations. We will continue to monitor thistrend to ensure inclusivity through the B&C model. B&C
plays a fundamental role in connecting growers thathave no access to the physical supply chain to a market
demand for CSPO.

part in alliances and initiatives to set
national-level goals for 100% CSPO
across different target dates (up to 2020).
The RSPO has continued supportingthese commitments in 2016 and 2017
through various activities, bringing actors
together, enabling partnerships anddiscourse, campaigning on sustainability
issues and promoting CSPO.
We have also sustained our engagementswith some of the largest consumer
markets for palm oil products in Asia andNorth America. By 2020, our goal is for
Malaysia and Indonesia to reach 50%
CSPO, India 30% CSPO, China 10% CSPO,
and the U.S. 100% CSPO.
RSPO regional offices and representatives
facilitate our tailored approach for eachcountry and region (See RSPO Impact
Report 2016, pages 46 - 53). While wecontinue to make progress in markets
outside of Asia, Europe and North
America, the following key highlights andupdates relate to these three regions.

The Amsterdam Declaration was encouraged by European private sector organisations engaged in the palm oil supply chain. Initial signatories in 2015 include: United
Kingdom, the Netherlands, Germany, France, and Denmark. Since its launch, Norway and Italy have signed the Declaration as well. The Declaration can be accessedat https://www.euandgvc.nl/documents/publications/2015/december/7/declarations-palm-oil” www.euandgvc.nl/documents/publications/2015/december/7/
declarations-palm-oil

22 RSPO IMPACT UPDATE 2017

MARKET
OUTREACH

Key Regional Updates: Asia

Asia

The number of supply chain
certified facilities in China has
increased by 40% over the courseof the reporting period.

• In January 2017, the RSPO launched theYouth Leader in Sustainability Programme
in Indonesia, in collaboration with WWFIndonesia, The Body Shop Indonesia, and
SINAR MEADOW. A competition was held,
garnering participation from 810 students
from 58 universities, and three youth
leaders were selected for internships at the
RSPO and its partner hosts.

• During the reporting period, the RSPO has
also strengthened engagement with both
media and consumer groups in the region
through a number of partnerships andactivities. These include:• RSPO membership in China increased from52 members (as at 30 June 2016) to 74
members (as at 30 June 2017). The number
of RSPO supply chain certified facilities in
China has also grown from 72 facilities toa total of 101 facilities during this same
period.
• The Singapore Alliance for Sustainable Palm
Oil (SASPO) was formed in June 2016 withthe aim to increase demand for sustainablepalm oil. SASPO was jointly launchedby WWF-Singapore and a group of fivefounding members. The Alliance’s kick-off
event was held in November 2016.
• The 14th Roundtable Meeting (RT14) took
place in Bangkok, Thailand on 10 November
2016. It was attended by more than 800
representatives from 46 countries, andfocused on themes relating to equality,
human rights and smallholder inclusivity.
• WWF Japan and the RSPO hosted the firstever RSPO Japan Day in Tokyo in September
2016. Topics included sustainability issues
in palm oil, supply chain certification, bestpractices and challenges, and sustainableprocurement of palm oil.
• In August 2016, a sustainable consumption
event took place in Malaysia, jointly
organised by WWF-Malaysia, Malaysian
Environmental Non-Governmental
Organisations (MENGO) and EcoKnights.
The RSPO held a presentation during theevent, which focused on the critical role ofcertified sustainable palm oil.

• The RSPO hosted an estimated 120
attendees at its first roadshow in Subang,
Selangor in April 2017. The purpose of
the event was to increase awarenessof the RSPO’s mission and encourage
local businesses to take the first steps inadopting best sustainability practices. The
event is the first of several roadshows
planned for Malaysia, Singapore andThailand in 2017.

• Launching a video campaign promoting
the RSPO’s Trademark App (see page 27),
targeting consumers in Malaysia.
• Establishing a media partnership inDecember 2016 with one of Asia-Pacific’s
leading sustainability news sites, EcoBusiness.
• Forming an advertorial media
partnership in May 2017 with The
Edge, a publisher of leading businessand financial publications in Malaysia
and Singapore, and with Kompas.com,
the leading online news publication inIndonesia.

RSPO IMPACT UPDATE 201723

MARKET
OUTREACH

Key Regional Updates: Europe

In June 2017, Italy signed theAmsterdam Declaration, joining
a number of other European
countries in their pledge topromote the use of 100%
sustainable palm oil by 2020.

Europe• Adjacent to RT14, the RSPO regional officein Europe organised a successful media
tour for seven international journalists
in Krabi, Thailand in November 2016.
Participants had the opportunity to visit
certified smallholder farmers and learn
about the challenges that they face.
• On 6 June 2017, Italy signed theAmsterdam Declaration along with
Denmark, France, Germany, theNetherlands, the UK and Norway, which
pledges countries to promote the use of
100% sustainable palm oil by 2020.
• The fifth annual European Roundtable(EURT) event was held in London inJune 2017, receiving over 342 delegatesfrom 27 countries. The event focusedon innovations and partnerships fortransforming the palm oil supply chain
towards 100% sustainability.

24 RSPO IMPACT UPDATE 2017

• The ‘Fundación Española del Aceite dePalma Sostenible’, a Spanish foundation forsustainable palm oil, was launched in June
2017.
• The RSPO and Friends of Europe co-hosted
a debate titled ‘Deforestation: A Sustainable
Dilemma’, which was attended by over
100 people in Brussels in March 2017.
One key topic was the role of downstream
governments and other actors in closing
the gap between commitments and actions
in working towards a deforestation-free
economy.
• The RSPO launched a media partnershipwith Huffington Post Italy to provide aforum for more informed discussion onsustainable palm oil, a topic of popular
debate in Italy.

• The UK reported that, collectively, by end
December 2015, the imports of Segregatedand Mass Balance CSPO and purchases ofGreenPalm certificates by UK companies
in 2015 were equivalent to an estimatedproportion of 87% or 108% of UK palm oil
imports (excluding derivatives and finishedgoods), depending on the baseline trade
data used. This represents an increase from
72% or 93% respectively in 2014, and from
50% and 59% respectively in 2012. Notably
the British Retail Consortium reported
that leading UK retailers had reached theirtarget of 100% of palm oil sourced beingcertified as sustainable palm oil by the endof 2015, 89% of which was physically CSPO.
• In April 2017, the European Parliament
passed a non-binding resolution aimed atlimiting imports of palm oil connected with
deforestation. It also supported certification
as a means.

MARKET
OUTREACH

Key Regional Updates: North America

North America

Combined RSPO membership for
the U.S. and Canada has risen byapproximately 62% since 30 June 2016.

• The North American Sustainable Palm Oil Network (NASPON) is
expected to launch in late November 2017. NASPON will work
towards making North America a 100% CSPO market, and is currently
developing a formal group structure.

• The number of RSPO supply chain certified companies in the
United States (U.S.) and Canada has increased from 114 to 194 overthe course of the reporting period. In addition, combined RSPO
membership for these two countries has risen by approximately 62%
since 30 June 2016, amounting to 371 members as at 30 June 2017.

Photo credit: RSPO & Jonathan Perugia

RSPO IMPACT UPDATE 201725

MARKET
OUTREACHRSPO Trademark
As at 30 June 2017, RSPO Trademark
licences are held by 556 supply chain
certified members across 50 countries
worldwide. During the reporting period,
we also welcomed four new countries
to the Trademark licence list: Hungary,
Lithuania, Peru and Turkey.
European markets still lead the field in
RSPO Trademark licensing, with Germany
significantly ahead (even within the
top ten countries). Outside Europe, thecountry with most Trademark licencesis the United States (U.S.). Many U.S.
RSPO member companies are global
and require flexibility for their EU
operations to use the Trademark if theywish, which may partly explain thistrend. An increasing number of retailers

910

and companies are also starting toexperiment with RSPO Trademark use in
the U.S. market.
Considered alongside RSPO member
data for the U.S. (see page 6), there isreason to believe that the U.S. market
for sustainable palm oil is making
positive progress. More companies are
implementing corporate sustainablesourcing policies within their national
supply chains, and the momentum
continues to grow following the
UN New York Declaration on Forests(2015),9 and The Consumer Goods
Forum's commitment to achieving zeronet deforestation by 2020,10 which havebeen used to frame the construction ofsustainable sourcing policies.

UN New York Declaration on Forests (2015) committed companies to half net deforestation in their supply chains by 2020, and to eliminating net deforestation by 2030.
For further information, see www.theconsumergoodsforum.com/blog/966-implementing-and-scaling-up-the-cgf-zero-net-deforestation-commitment.

26 RSPO IMPACT UPDATE 2017

MARKET
OUTREACH

Trademark Licences by Country

he

r

146

Ot

a
st
ri

ai

15

Au

Sp

n

ay
sia
al

d

27

Un

ite

32

M

St
at
es

Ita

33

ly

34

lgi

39

Be

la

nd

s

ce

er

Ki
d
ite
Un

44

Ne
th

m
ng
do

rm
Ge

47

Fr
an

48

an
y

91

um

(As at 30 June 2017)

Note to data: Trademark licence data reflects data from supply chain certified members only.

With effect from September 2015, all new members receive an RSPO Trademark
licence upon joining the RSPO. This explains the sudden increase in licence holders
from the last reporting period (although the use of the RSPO Trademark on products
is restricted to supply chain certified members only): 144 new licences were issued inthis reporting period while 112 were issued between 1 July 2015 - 30 June 2016.
We will continue to engage in innovative activities and campaigns to strengthenawareness of the RSPO Trademark along the palm oil supply chain and among
consumers worldwide. In 2016, we built and launched a free crowdsourcing
application - the RSPO Trademark App. This enables consumers to find, shop andupload RSPO certified products bearing the RSPO Trademark wherever they are in
the world. While there have not yet been as many uploads as we would like, it isencouraging to see that the number of products listed on the app has doubled in
the past year.

As at 30 June 2017,
RSPO Trademark
licences are held by
556 supply chain
certified members
across 50 countries
worldwide.

The free RSPO Trademark App is available for iOS and Android. See how it works at:
www.youtube.com/watch?v=MXoQeyEDn44.

RSPO IMPACT UPDATE 201727

SEnSORPROGRAMMEThe Socially and Environmentally Sustainable Oil Palm Research (SEnSOR) Programme was initiated in 201211 to generate scientificresearch on the impacts of RSPO certification. This independent research programme focuses on testing the effectiveness of RSPO
standards across three dimensions: biodiversity, environment, and people.

1
Phase 0ne : Key Findings
The first phase of SEnSOR entailed building the evidence base essential for effectively measuring the impacts ofcertification. Dedicated teams compiled existing studies and knowledge on biodiversity, environment and people,
and collected new baseline data in areas where research was lacking. Phase one was completed in September 2016.

Biodiversity

Environment

People• Data on forest patches
have been synthesised.
The results show thatconservation areas within
oil palm plantations need to
be at least a few hundredhectares in size to havesubstantial benefits forbiodiversity.

• The effectiveness of Version
1.0 of the RSPO PalmGHG
calculator tool has been
evaluated and knowledge
gaps have been identified.
Available evidence
supporting soil management
best practices has also beencollated.

• The Free, Prior andInformed Consent (FPIC)
process has been shownto increase interactions
between plantations andcommunities, but there
is no conclusive evidence
that FPIC reduces conflictor improves social equality.
A lack of empirical studies
has been cited as a key
constraining factor in
drawing meaningfulconclusions.
• Investigation into
smallholders’ adoption ofcertification concludes that
smallholder organisation isa key barrier to certification.
Compliance with bestpractices and biodiversity
and HCV criteria are foundto be especially challenging.

All SEnSOR phase one reports can be downloaded at www.sensorproject.net/reports.

11

The SEnSOR Programme was first introduced at the 10th RSPO Roundtable Meeting in 2012 in Singapore and implementation began in 2015.

28 RSPO IMPACT UPDATE 2017

SEnSORPROGRAMME

2
Phase Two : Progress of Ongoing Projects
The second phase of the programme, ongoing between September 2016 and December 2017, uses Borneo as astudy site and involves three substantial research projects that are collecting new data to determine the impacts of
RSPO certification.

Biodiversity

Environment

People• Mapping and digitising of
the spatial location andarrangement of HCV sites
across Kalimantan is taking
place to assess whether
these conserved areas are
improving connectivity
for biodiversity in thelandscape. Field surveys
will also be conducted toassess the current levels of
biodiversity supported bythese HCV patches.

• In a partnership study,
SEnSOR’s Environment teamis measuring carbon storagein HCV areas to assess theimpact of certification on
the retention of carbon
stocks in plantation
landscapes.

• SEnSOR’s People teamis utilising an innovativerole-playing approach toinvestigate whether the
RSPO’s dual aims of reducing
deforestation and improving
livelihoods are in conflict inthe smallholder context in
Sabah.

Outputs from this phase will be made available by the end of 2017.

3
Phase Three : Plans and Funding
Phase three will aim to expand SEnSOR’s field site network to test the impacts of RSPO certification on biodiversity,
to include new taxonomic groups and to test the persistence of species in the landscape. The Biodiversity teamaims to integrate soil and hydrology studies at key study sites. The People team will build on the baseline datacollected during phase two to expand research into the impacts of RSPO certification on smallholder livelihoods,
and, in collaboration with the Biodiversity and Environment Teams, assess impacts in these fields within thesmallholder context.
In addition to funding from the RSPO, USD 2 million has been granted to SEnSOR-linked projects by the corporate
sector and governments of the UK, Netherlands, Malaysia and Indonesia. Co-funded projects include research on
peatland restoration, riparian reserves, carbon storage, impacts of climate change and invasive species in oil palm
landscapes.
For more details about the programme visit www.sensorproject.net/programme.

RSPO IMPACT UPDATE 2017

29

RSPO
PRINCIPLES&CRITERIA
REVIEW
32
33
36
37

Background
Review Process Overview
P&C Review Task ForceRSPO Certification Systems:
Enhancing Quality, Credibility
and Oversight

30 RSPO IMPACT UPDATE 2017

RSPO IMPACT UPDATE 201731

Photo credit: RSPO & Jonathan Perugia

RSPO PRINCIPLES &CRITERIA REVIEW

BackgroundAs an ISEAL Alliance member, we are required to review ourcertification standard at least every five years to ensure its
continued effectiveness in meeting its stated objectives. As acredible and leading certification organisation for sustainablepalm oil, we are further committed to upholding a standard
that remains relevant and reflects stakeholders' understandingof best practices in the sector.
The RSPO Principles & Criteria (P&C) is the standard at the heartof the RSPO certification process. The last review of the RSPO
P&C (RSPO P&C 2007) took place in 2012, and the resultant
RSPO P&C 2013 was adopted by an extraordinary General
Assembly in April 2013. A central focus of our work in 2017 and2018 will be to conduct the next P&C review.
The review process was initiated in March 2017. Its scope isthe generic P&C 2013 document, comprising of Preamble,
Principles, Criteria, Indicators and Guidance, together with
Definitions and Annexes. The review is targeted for completionin time for adoption at the RSPO General Assembly in
November 2018. It will also need to be endorsed during the
RSPO Board of Governors (BoG) meeting in Q2 2018.

Photo credit: RSPO & Jonathan Perugia

Particular focus has been placed on ensuring that the P&C
review is delivered via a truly inclusive process. The evaluation
will take into consideration information collected fromstakeholder input, auditing results and feedback from ourmonitoring and evaluation work, as well as new knowledge
and practices. Another important requirement of the review
will be to reflect impact elements as prescribed by the RSPO’s‘Theory of Change’, which was endorsed by the RSPO Board ofGovernors in September 2017.12

A central focus of our work in 2017and 2018 will be to conduct the next
P&C review. The review processcommenced in March 2017, andis targeted for completion in time
for adoption at the RSPO General
Assembly in November 2018.

12

The RSPO's 'Theory of Change' is a roadmap illustrating what, how, and why
our intended activities are expected to drive change and deliver on impacts,
ultimately making sustainable palm oil the norm.

32 RSPO IMPACT UPDATE 2017

Photo credit: RSPO & Jonathan Perugia

RSPO PRINCIPLES &CRITERIA REVIEWTo ensure that the RSPO and the review process are in linewith ISEAL, we have also translated ISEAL’s best practices forstandard-setting into an RSPO SOP document, which came into
effect on 1 July 2017.13 The SOP sets out procedures for all RSPO
standard development activities and defines how the present
review is being structured and conducted.

Review Process Overview
The process officially commenced with the establishment of
the P&C Review Steering Group. The Steering Group is tasked
with overseeing the review, particularly during the formationof the P&C Review Task Force and the submission of the final
document to the RSPO Board of Governors. The Steering Group
was also responsible for appointing the consultant to facilitate
this process. Once established, the Task Force is responsible for
producing the draft revised P&C.

PRINCIPLES & CRITERIAREVIEW STEERING GROUP• Chair of the Standards & Certification Standing
Committee• Chair of the Claims & Communications Standing
Committee• Chair of the Trade & Traceability Standing
Committee• Indonesian grower representative from the BoG• Malaysian grower representative from the BoG• RSPO Chief Executive Officer• RSPO Technical Director

13

Photo credit: RSPO & Jonathan Perugia

The RSPO Standard Operating Procedure for Standard Setting and Review can beaccessed at www.rspo.org/news-and-events/announcements/revised-rspostandard-operating-procedure-for-standard-setting-and-review-june-2017

RSPO IMPACT UPDATE 201733

RSPO PRINCIPLES &CRITERIA REVIEWRSPO PRINCIPLES &CRITERIA REVIEW

An overview of the P&C review process is outlined below:

Preparation Phase

Drafting & Consultation Phase(March - June 2017)(June - November 2017)

Approval Phase(November 2017 - March 2018)(March - April 2018)(May - November 2018)

Draft 0Draft 1

Draft 2

Draft 3

Final Draft

Gap analysis:

Outreach session at RSPO EURT
(June 2017)

Third Task
Force meeting(November 2017):

Fourth Task Forcemeeting (March 2018):

Final Draft completed
and signed-off by Task
Force (May 2018)

RSPO P&C 2013 underwent comparative analysis against otherstandards, and recommendations were made on the scope of thereview.

Draft 0 started (March 2017):
A draft outlining what the Standard should look like wasproduced, incorporating recommendations emerging from thegap analysis, results of the desk reviews conducted, and inputs
gathered from various internal and external processes since thelast review of the Standard.

P&C Review Task Force established (April 2017):
Members were nominated according to sector by RSPO BoG
members from each membership category. The Steering Groupmade the final decision on Task Force selection.

First Task Force meeting (May 2017):
Discussions held at P&C level covering issues raised in Draft 0, but
not at indicator level.

Draft 0 completed (June 2017)

Second Task Force meeting(July 2017)
Draft 0 is reviewed, and discussion held at
indicator level. Production of Draft 1.

Considers the compiled feedback
from public consultation 2 for
production of Final Draft.

Draft 2 completed(December 2017):

Draft 3 completed(April 2018):

Draft 1 completed (August 2017)

Draft 2 is produced based on
input from public consultation 1.

Draft 3 is produced based on
input from public consultation 2.

Translations & consistency check 1(August 2017)

Translations &consistency check 2(Dec 2017 - Jan 2018)

Pilot tests &recommendations(April 2018):

Public consultation 1(Sep - Oct 2017):

Public consultation 2(Jan - Feb 2018):

Pilot tests take place in South
East Asia, Africa and Latin
America.

The 60-day consultation takes place online,
and through workshops and face-to-faceconsultations. Workshops held in Malaysia,
Indonesia, Europe, Africa and Latin America.

The 30-day consultation takes
place online and throughworkshops held in Malaysia,
Indonesia, Europe, Africa andLatin America.

Comments collated(November 2017)

Comment consultation(Feb - Mar 2018)

Theory of Change elements considered throughout the process

RSPO Secretariat & Steering Group
34 RSPO IMPACT UPDATE 2017

Compiled comments from thefirst public consultation are
discussed for Draft 2 production.

BoG endorses Final
Draft (June 2018)
Adoption bymembers at RSPO
General Assembly(November 2018)

Theory of Change elements considered throughout the process
The RSPO Secretariat acts as the technical resource for the process throughout all phases and is responsible forcoordinating the logistics. The Steering Group oversees the entire review process and multiple briefings are held
throughout the duration of the review.

RSPO IMPACT UPDATE 201735

RSPO PRINCIPLES &CRITERIA REVIEW

Particular focus has been placedon ensuring that the P&C review isdelivered via a truly inclusive process
Existing RSPO working groups were briefed by the RSPO Secretariat on the review process, as required by the SOP, and their input
was collected before the P&C Task Force was chosen. This input was taken into consideration to produce Draft 0 of the revised P&C.
Working groups, consultant experts and stakeholders have some opportunities to feed into the process before or during each of thefour Task Force meetings, and especially during public consultations.

P&C Review Task ForceThe P&C Review Task Force was established in April 2017. It is chaired by the RSPO's Chief Executive Officer and consists of palm oil
producers, supply chain and investor representatives and NGOs. Terms of Reference for the Task Force were developed at the startof 2017 and members of the RSPO Board of Governors made nominations according to sector. The Steering Group made the final
decision on the composition of the Task Force, which now includes 24 substantive members (and 19 alternates).

Palm oilproducers

12

members
representing:

Malaysia (3), Indonesia (3), Rest of
the World (3) and smallholders andoutgrowers (3).

36 RSPO IMPACT UPDATE 2017

Supply chain
and investors

6

members
representing:

Processors, refiners, traders,manufacturers using oil palm, retailers
and financial institutions.

Non-governmentalorganisations (NGOs)

6

members
representing:International environmental andsocial NGOs/civil society.

RSPO PRINCIPLES &CRITERIA REVIEWThe role of Task Force members during the four physical meetings is to deliberate on the structure and content of the revised
standard. More specifically, they are responsible for:Converting the issues
raised in Draft 0 into
an agreed scope forchanges at ‘Principles’and ‘Criteria’ levels.

Discussing the
P&C indicators andproducing the draft
revised P&C 2018 forthe first 60-day public
consultation.

Evaluating feedback
from the first public
consultation andproducing Draft 2 forthe second 30-day
public consultation.

Considering input
from the second
public consultationand completing the
Final Draft revised
P&C document for
submission to theBoard of Governors.

The Task Force must adhere to its Code of Conduct and members are committed to active participation in all meetings, as well as
consulting with and obtaining input from interested parties not represented directly in the Task Force. Most importantly, Task Forcemembers agree to strive toward making all decisions by consensus.
Topic experts, representatives from certification bodies and academics can also be invited by the RSPO to participate in the process.
Topic experts may be asked to inform the Task Force on critical issues, for instance HCV, labour, health and safety, chemicals andsupply chain issues, while representatives from certification bodies may be required to act as observers during Task Force meetings.

RSPO Certification Systems: Enhancing Quality, Credibility and OversightIn addition to the crucial review of the RSPO P&C 2013, we have also focused our efforts in 2016 and 2017 on evaluating andimproving the system under which RSPO members receive certification. This focus follows Resolution 6h passed at the 12th General
Assembly in 2015, which commits the RSPO to improving the quality, credibility and oversight of RSPO assessments.
This commitment has involved a review of the RSPO Certification Systems for the RSPO P&C, which set out the requirements
for the systems that must be followed in implementing certification against the requirements of the RSPO standard and related
assessments. The revised RSPO Certification Systems for the P&C came into effect on 1 July 2017.14 All members and certification
bodies have been allocated a transition period of twelve months to achieve compliance. Further updates on implementation will be
provided in the next Impact Report scheduled for 2018.
Important progress has also been made in the RSPO Integrity Project, a collaboration between the RSPO and Accreditation Services
International (ASI). The project aims to strengthen the implementation of RSPO requirements, identify gaps and weaknesses in the
RSPO standards and provide a platform for alignment between the RSPO, ASI and certification bodies. In March 2017, ASI released
a report summarising key findings on the first set of compliance assessments conducted by ASI, and evaluating the performance ofcertification bodies in RSPO audits.
Although based on only 10 assessments, the results already indicate that substantial improvements are needed in the training
and performance of certification bodies currently conducting RSPO audits. Given the significance of these findings, and that more
compliance assessments will be conducted by ASI in 2017, the RSPO will provide a comprehensive update on the RSPO Integrity
Project - including progress on its other components - in 2018.
The results of the report can be accessed at www.rspo.org/about/who-we-are/task-forces/assurance-task-force.

14

The latest version of the RSPO Certification Systems for Principles & Criteria can be accessed at www.rspo.org/key-documents/certification/rspo-certification-systems.

RSPO IMPACT UPDATE 201737

BASE DATA,GLOSSARY &REFERENCES
40
43
45
47

Base Data and Notes
Glossary
References
Contact the RSPO

38 RSPO IMPACT UPDATE 2017

RSPO IMPACT UPDATE 201739

Photo credit: RSPO & Jonathan Perugia

BASE DATAAND NOTESUnless otherwise specified, all figures and results presented in this report are inclusive up until 30 June, or based on the RSPO’s
official reporting period: 1 July - 30 June. This excludes data from other sources (e.g. independent research studies), which may
have a calendar year basis (1 January - 31 December).
Figures presented below may differ from figures presented in the base data sections of previous RSPO Impact Reports and Updates,
as corrections were made to ensure that data reflects the RSPO’s official reporting period. This includes a restatement of the 2014
NPP area figures, which did not reflect annual data (1 July 2013 - 30 June 2014). To ensure the accuracy of all historical data, the
RSPO will conduct a full evaluation of historical data in the next reporting term.
Indicator

Unit

2017

2016

2015

2014

2013

2012

Number ofMembers

3,422

2,941

2,282

1,631

1,178

838

United412
Kingdom
Germany
403
United States
324
Netherlands
212
Italy
179
Number ofFranceMembers
146
Malaysia
137
Belgium
131
Australia
124
Indonesia
115
Other
1,239
By
Ordinary
1,551
Number ofMembership
Associate
1,776
Members
Type
Affiliate
95
Certified, Production and Uptake
Area
ProductionHa
2,451,573
Area
Certified AreaHa3,236,429
HCV AreaHa
189,777
Annual Production CSPOMT
11,710,919
Capacity
CSPKMT
2,683,835
SupplyCSPOMT5,996,499
CSPKMT
1,374,420
Sales
CSPO SalesMT
2,328,312
through IP, SG,MB
CSPO SalesMT
667,314through B&C
Total CSPOMT
2,995,626
Sales
UptakeCSPO Sales/MT50%
Supply

378

330

200

131

106

372
200
191
158
143
128
106
114
115
1,036
1,373
1,458
110

279
138
146
113
127
109
89
80
103
768
1,151
1,032
99

208
89
119
52
106
117
62
53
109
516
991
540
100

147
70
92
29
86
95
44
0
88
396
829
309
103

97
46
69
0
73
87
24
0
70
266
695
142
104

2,187, 784

2,768,149*

2,509,853*

NANA

2,830, 355
157,115
10,850,196
2,444,103
12,062,293**
2,765,223**
3,674,550**

3,300,653*
144,164*
12,623,139*
2,883,200*
12,130,775
2,780,291
2,755,904

2,973,902*
NA
11,125,902*
2,556,432*
10,998,913
2,531,369
2,432,258

NA
NA
NA
NA
8,735,843
2,030,746
1,551,017

NA
NA
NA
NA
6,724,236
1,570,070
984,138

1,958,181**

3,426,790

2,917,408

2,962,256

2,495,277

5,632,731**

6,182,694

5,349,666

4,513,273

3,479,415

46.7%**

51%

48.6%

51.7%

51.7%

Total

Breakdown
Membership

By Country

Notes to data:• Membership, Area and Annual Production Capacity data for 2012 - 2017 is taken as at 30 June for each respective year.
• Final data for Supply, Sales and Uptake can only be calculated at year-end (31 December). Therefore, data for 2012 - 2016 is inclusive until
31 December, and data presented for 2017 is only inclusive until 30 June 2017.
• All figures presented under Certified, Production and Uptake are inclusive of schemed and independent smallholders certified under group
certification schemes.
• Figures marked with an asterisk have been corrected for the 2017 report to be inclusive up to 30 June of each respective year, and may therefore
differ from corresponding figures presented in the RSPO Impact Report 2016.
• Figures marked with a double asterisk have been updated for this report to be inclusive up to 31 December 2016.

40 RSPO IMPACT UPDATE 2017

BASE DATAAND NOTES

Indicator
NPP Area(By Country)

Breakdown
Unit
New Planting Procedure
Indonesia
Ha
LiberiaHa
CameroonHa
Papua NewHa
GuineaMalaysia
Ha
MexicoHa
Gabon
Ha
GuatemalaHa
CambodiaHa
NigeriaHa
Costa Rica
Ha
Togo
Ha
Ghana
Ha
Brazil
Ha

2017

2016

2015

2014

2013

2012

17,939972

34,6092,591

332,372
48,470-464,891
53,385
2,928

NA
NA
NA
NA

NA
NA
NA
NA

496
1,019
72,930
496
2,368
4,144
-

2,823
-

3,558
23,7802,240
7,448

31,800
691
2,432
2,532
-

NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

Notes to data:• NPP areas distributed over country and year. Figures are based on the RSPO’s official reporting period (1 July - 30 June).
• All NPP area data for 2014 has been corrected in this report to reflect the RSPO’s official reporting period (1 July 2013 - 30 June 2014). The data
therefore differs from corresponding figures presented in the 2014, 2015 and 2016 reports, which reflect total NPP area taken as at 30 June 2014.
Indicator

Breakdown
TrademarkTotal Trademark
By StakeholderGroup

By Country

By YearConsumer Goods
Manufacturers
Processors &Traders
Supply Chain
Associates
Supply ChainGroup Managers
Retailers
Growers
Germany
United Kingdom
FranceNetherlands
Belgium
Italy
United States
Malaysia
Spain
Austria
Others

Unit

2017

2016

2015

2014

2013

2012

Number ofLicences

556

412

300

181

NA

NA

220

175

128

79

NA

NA

109

86

77

51

NA

NA

200

135

77

36

NA

NA

2

NA

NA

NA

NA

NA

7
18
91
48
47
44
39
34
33
32
27
15
146
70

7
9
68
39
42
35
32
27
20
25
19
94
163*

9
7
54
24
27
24
22
24
28
58
111

9
6
40
17
20
15
11
16
21
27
98

NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
51

NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
29

Number ofLicences

Number ofLicences

Number ofLicences

Notes to data:• Trademark licence data ‘By Year’ for 2012 - 2016 is representative of calendar year (1 Jan - 31 Dec). Data presented for 2017 represents
half-year data (1 Jan - 30 June 2017).
• Figures marked with an asterisk have been updated for this report to be inclusive up to 31 December 2016.

RSPO IMPACT UPDATE 201741

BASE DATAAND NOTES

Indicator

BreakdownComplaints

Unit

2017

2016

2015

2014

2013

2012

Complaints Success Complaints resolved/ closed
Criteria
Average time to close a complaint

% age
Days

0%
73
7

22.2%
363*
6

39.3%
685
NA

40%
604
NA

36.1%
414
12

28%
455
6

0

1

1

2

1

2

Actions plans or remedial works
undertaken
Members suspended or
voluntarily withdrew after
complaint verified

Notes to data:• Complaints data for 2012 - 2015 is representative of calendar year (1 Jan - 31 Dec). Figures for 2017 were taken as at 30 June 2017.
• Figures marked with an asterisk have been updated for this report to be inclusive up to 31 December 2016.

Indicator
P&C Certification
Mills and Supply Base(s)Group Certification for
Smallholders (SHG)

Total
Total Certified Production Area
Area (Ha)(Ha)
3,224,835
11,5942,440,402
11,171

Total CSPO
(MT)

Total CSPK
(MT)

Total FFB
Produced (MT)Monthly CSPO
Supply (MT)Monthly CSPK
Supply (MT)11,664,557
46,362

2,671,960
11,87551,768,463
230,941

972,046
3,864

222,663
990

Total CSPO
(MT)

Total CSPK
(MT)

Total FFB
Produced (MT)Monthly CSPO
Supply (MT)Monthly CSPK
Supply (MT)137,915
30,096140,093
191,984
10,512
18,62944,429133,687
83,6896,521,589
5,000
1,220
3,663,529
631,587
30,75919,83827,584
6,174
31,46843,598
7,236
3,493
10,47826,225
18,662
1,474,706
1,090
650
859,601
148,974
7,184
4,838

790,000
154,338
684,086
778,247
80,786
77,622
209,562
777,404
359,933
28,142,512
66,1306,336
16,632,182
2,780,257
132,296
96,772

11,493
2,508
11,674
15,999
876
1,552
3,702
11,141
6,974
543,466417
102
305,294
52,632
2,563
1,653

2,299
514
2,622
3,633
603
291
873
2,185
1,555
122,892
91
54
71,633
12,415599
403

Note to data:
All figures in the above table are taken as at 30 June 2017.
Total
Total Certified Production Area
Indicator
Area (Ha)(Ha)
Countries with P&C Certification
Brazil124,481
46,213
Cambodia
24,843
14,072
Colombia
55,00835,813
Costa Rica
48,52344,385
Ecuador
7,252
5,878
Gabon
20,0305,145
Ghana
25,47815,785
Guatemala29,587
27,732
Honduras
20,836
20,286
Indonesia
1,718,558
1,332,258
Côte d’Ivoire
7,414
7,414
Madagascar
2,234
1,087
Malaysia
941,876
733,785
Papua New Guinea
184,038
139,105
Solomon Islands
9,015
6,198
Thailand
5,662
5,247

Note to data:
All figures in the above table exclude data for independent smallholders certified under group certification, but are inclusive of schemed
smallholders certified under group certification. All figures are taken as at 30 June 2017.

42 RSPO IMPACT UPDATE 2017

GLOSSARY

Accreditation Services International (ASI): One of the world’s leading accreditation bodies for sustainability standards systems,
including the RSPO. Founded in 2006, ASI is a full member of the ISEAL Alliance.

Book and Claim (B&C): Supply chain model that supports the production of RSPO certified sustainable oilpalm products through the sale of RSPO Credits.

Certification body (CB): Organisation that provides third party auditing and certification services related to a
product, process or system, and which can issue a certificate of compliance.

Certified Sustainable Palm Oil (CSPO): Palm oil that has been grown on a plantation that has been managed and certified
in accordance with the RSPO Principles & Criteria.

Compliance assessment: In-field assessment conducted by an accreditation body that serves to evaluate
a certificate holder typically a few months after a CB has completed its latest
assessment of the certificate holder.

Crude palm oil (CPO): A type of unrefined vegetable oil obtained from the fruit of the oil palm tree.

Dispute Settlement Facility (DSF): RSPO in-house mediation service that facilitates the sharing of information,
contacts, know-how and experiences relevant to palm oil production dispute cases(where at least one party is an RSPO member). The DSF also supports and facilitatescommunities and other stakeholders to use mediation as an effective means toresolve disputes.

Final Conservation Liability (FCL): Compensation liabilities incurred by RSPO members as a result of clearance without
prior HCV assessment since November 2005. FCL is expressed in hectares.

Free, Prior and Informed Consent (FPIC): A principle that a community has the right to give or withhold its consent toproposed projects that may affect the lands they customarily own, occupy orotherwise use.

Fresh Fruit Bunch (FFB): Bunch harvested from the oil palm tree. Each bunch can weigh from 5 to 50
kilogrammes and can contain 1,500 or more individual fruits.

Greenhouse gas (GHG): Term for gases that trap heat within the atmosphere. The primary greenhousegases are water vapour, carbon dioxide, methane, nitrous oxide, and ozone.

Hectares (ha): A unit of measurement equivalent to 10,000 square metres, or 100m x 100m.

High Conservation Value (HCV): Biological, ecological, social or cultural values which are outstandingly significant or
critically important at the national, regional or global level.

Identity Preserved (IP): The Identity Preserved supply chain model assures that RSPO certified palm oil is
kept separate from oil that is not RSPO certified. This oil can be physically traced
back to its plantation of origin.

ISEAL Alliance: Global membership association for credible sustainability standards, which work
together to improve the impact and effectiveness of current and potential future
members.

Jurisdictional approach to certification: In the context of sustainable palm oil, the jurisdictional approach involves thecertification of palm oil production at the provincial level, utilising a particularmodel of rural development. The approach facilitates collaboration between local
stakeholders and regional governments to improve the welfare of small-scale
farmers, curb the use of environmentally destructive practices such as slash-andburn clearing, and iron out supply chain inefficiencies.

Land Use Change Analysis (LUCA): Assessment determining changes to vegetation cover and land use over a given
timeframe. Must be completed by RSPO members prior to any conversion or new
planting.

RSPO IMPACT UPDATE 201743

GLOSSARY

Mass balance (MB): Supply chain model that allows certified claims to be transferred from one oil palm
product to another, either through physical blending or administratively understrictly controlled circumstances.

Metric tonne (MT): A unit of mass equivalent to 1,000 kilogrammes

New Planting Procedure (NPP): Provides guidance on how and under what conditions new oil palm plantings
should be carried out.

Non-compliant land clearance (NCLC): All clearance by RSPO members without prior HCV assessment since November
2005.

Oil palm: A species of palm (Elaeis guineensis) and the principal source of palm oil. It is native
to west and southwest Africa, but is now cultivated in over 26 countries. Ideal
growing conditions occur up to 10 degrees either side of the equator.

PalmGHG: A calculator developed by the RSPO Greenhouse Gas Working Group (2010 - 2011)
and further refined and improved by the RSPO Emission Reduction Working
Group to estimate and monitor net GHG emissions from current estate and milloperations, as well as new plantings.

PalmTrace: The RSPO’s new integrated traceability system (replacing eTrace and GreenPalm),
used by RSPO certified members to register sales of certified oil palm products.
PalmTrace enables the trading of RSPO certified volumes across all four supply
chain models (Identity Preserved, Segregated, Mass Balance and Book and Claim).

Palm Kernel Oil (PKO): Oil extracted from the kernel or core of the palm fruit.

Palm Oil: Edible oil extracted from the fruit of the oil palm. Palm oil is one of the few highly
saturated vegetable fats. It remains semi-solid at room temperature and is suitable
for a wide variety of applications. Palm oil is an ingredient in a large number of
products, including margarine, baked goods, chocolate, ice cream, soaps andcosmetics. It is also used as fuel for cars and power plants.

Peat: Peat is an accumulation of rotting plant material, forming in wetlands or peatlands.

Remediation and Compensation Procedure : Procedure whereby RSPO members are required to remediate and compensate for(RaCP)
land clearance without prior HCV assessment since November 2005.
RSPO Complaints and Appeals Procedure(CAP): RSPO procedure for dealing with complaints arising from a breach of the RSPO Key
Documents, and appeals against the decision of the Complaints Panel in relation tosuch Complaints.

RSPO Complaints Panel: High-level body that handles complaints against RSPO members.

RSPO Principles & Criteria (P&C): Guidelines on how palm oil companies and growers should produce palm oilsustainably. It forms the basis of all company assessments for certification and isreviewed every five years.

RSPO Smallholder Support Fund (RSSF): A fund established by the RSPO to help small, independent operators securesustainable palm oil certification while minimising costs. The RSSF is funded from
10% of income generated through the trading of CSPO.

Segregated (SG): The Segregated supply chain model assures that RSPO certified oil palm products
delivered to the end user come only from RSPO certified sources.

Smallholders: Farmers growing oil palm on a plantation of less than 50 hectares.

UN-REDD Programme: The United Nations Collaborative Programme on Reducing Emissions from
Deforestation and Forest Degradation in Developing Countries was launched in2008. It supports nationally led REDD+ processes and promotes the informed
and meaningful involvement of all stakeholders, including indigenous peoples
and other forest-dependent communities, in national and international REDD+
implementation.

44 RSPO IMPACT UPDATE 2017

REFERENCES

Dutch Ministry of Foreign Affairs. (2015, December 7)
The Amsterdam Declaration in Support of a Fully Sustainable
Palm Oil Supply Chain by 2020. Retrieved from www.euandgvc.nl/
documents/publications/2015/december/7/declarations-palm-oil

RSPO. (2016, October 30)
African Sustainable Palm Oil Conference shows momentum forsustainable palm oil on continent. Retrieved from www.rspo.org/
news-and-events/news/african-sustainable-palm-oil-conferenceshows-momentum-for-sustainable-palm-oil-on-continent

European Parliament. Committee on the Environment, Public
Health and Food Safety. (2017, March 20)
Report on palm oil and deforestation of forests. Retrieved
from www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//
TEXT+REPORT+A8-2017-0066+0+DOC+XML+V0//EN

RSPO. (2016, October 31)
Ecuador chooses Jurisdictional Approach for RSPO certification.
Retrieved from www.rspo.org/news-and-events/news/ecuadorchooses-jurisdictional-approach-for-rspo-certification

Máthé, L. (2017, March)
Accreditation Services International Report: RSPO Integrity
Project: RSPO Compliance assessments in 2015 and 2016 Summary and conclusions.Retrieved from www.rspo.org/about/
who-we-are/task-forces/assurance-task-force

RSPO. (2016, October 31)
RSPO Outreach Programme supports Sabah 100% CSPO
commitment.Retrieved from www.rspo.org/news-and-events/
news/rspo-outreach-programme-supports-sabah-100-cspocommitment

RSPO. (2013)
Principles and Criteria for the Production of Sustainable Palm Oil.
Retrieved from www.rspo.org/key-documents/certification/rspoprinciples-and-criteria

RSPO. (2016, November 29)
RSPO-RT14 Conference emphasises equality, human rights andsmallholder inclusivity.Retrieved from www.rspo.org/news-andevents/news/rspo-rt14-conference-emphasises-equality-humanrights-and-smallholder-inclusivity

RSPO. (2014)
Roundtable on Sustainable Palm Oil: Impact Report 2014.
Retrieved from www.rspo.org/key-documents/impact-reports
RSPO. (2015, November 20)
RSPO New Planting Procedure. Retrieved from www.rspo.org/
certification/new-planting-procedures
RSPO. (2015)
Roundtable on Sustainable Palm Oil: Impact Update 2015.
Retrieved from www.rspo.org/key-documents/impact-reports

RSPO. (2016)
Roundtable on Sustainable Palm Oil: Impact Report 2016.
Retrieved from www.rspo.org/key-documents/impact-reports
RSPO. (2017, February 3)
Solidaridad launches major RSPO smallholder certification
programme in Côte d’Ivoire. Retrieved from www.rspo.org/newsand-events/news/solidaridad-launches-major-rspo-smallholdercertification-programme-in-cote-divoire

RSPO. (2016, June 30)
Singapore launches the Singapore Alliance for Sustainable
Palm Oil. Retrieved from www.rspo.org/news-and-events/news/
singapore-launches-the-singapore-alliance-for-sustainable-palm-oil

RSPO. (2017, March 30)
Ecuador takes giant step towards certified sustainable palm oil
production. Retrieved from www.rspo.org/news-and-events/news/
ecuador-takes-giant-step-towards-certified-sustainable-palm-oilproduction

RSPO. (2016, August 1)
Creating opportunities for sustainable palm oil in Latin America.
Retrieved from http://www.rspo.org/news-and-events/news/
creating-opportunities-for-deforestationfree-sustainable-palm-oilin-latin-america

RSPO. (2017, March 30)
Palm oil and deforestation: closing the gap between commitments
and actions. Retrieved from www.rspo.org/news-and-events/
news/palm-oil-and-deforestation-closing-the-gap-betweencommitments-and-actions

RSPO. (2016, August 23)
World’s single largest independent smallholder group receives
RSPO certification. Retrieved from www.rspo.org/news-andevents/news/worlds-single-largest-independent-smallholder-groupreceives-rspo-certification

RSPO. (2017, March 30)
PalmTrace operational since January, market for GreenPalm
closing 31 March, 2017. Retrieved from www.rspo.org/news-andevents/news/palmtrace-operational-since-january-market-forgreenpalm-closing-31-march-2017

RSPO IMPACT UPDATE 201745

REFERENCES

RSPO. (2017, April 24)
Colombian DAABON are world’s first oil palm grower to receive
RSPO NEXT certification. Retrieved from www.rspo.org/news-andevents/news/colombian-daabon-are-worlds-first-oil-palm-growerto-receive-rspo-next-certification
RSPO. (2017, May 26)
RSPO’s first roadshow in Subang met with success. Retrieved fromwww.rspo.org/news-and-events/news/rspos-first-roadshow-insubang-met-with-success
RSPO. (2017, June 14)
RSPO Certification Systems for Principles & Criteria. Retrieved
from www.rspo.org/key-documents/certification/rspo-certificationsystems
RSPO. (2017, June 14)
RSPO Complaints and Appeals Procedures. Retrieved from http://
www.rspo.org/news-and-events/announcements/endorsement-ofthe-rspo-complaints-and-appeal-procedures-2017
RSPO. (2017, June 14)
RSPO Standard Operating Procedure for Standard Setting
and Review. Retrieved from www.rspo.org/key-documents/
certification/standards-setting-process
RSPO. (2017, July 28)
RSPO announces Youth Leader in Sustainability Programme
winners. Retrieved from www.rspo.org/news-and-events/news/
rspo-announces-youth-leader-in-sustainability-programme-winners
RSPO. (2017, June 29)
European Roundtable 2017 highlights RSPO achievements.
Retrieved from www.rspo.org/news-and-events/news/europeanroundtable-2017-highlights-rspo-achievements

RSPO. (n.d.)
PalmTrace. Retrieved from www.rspo.org/palmtrace
RSPO. (n.d.)Principles & Criteria review. Retrieved from www.rspo.org/
principles-and-criteria-review
RSPO. (n.d.)
Smallholders Hub. Retrieved from www.rspo.org/smallholders
SEnSOR. (n.d.)Socially and Environmentally Sustainable Oil Palm Research:
Programme. Retrieved from www.sensorproject.net/programme/
SEnSOR. (n.d.)Socially and Environmentally Sustainable Oil Palm Research:
Reports. Retrieved from www.sensorproject.net/reports/
The Consumer Goods Forum. (2017, April 12)
Implementing and Scaling up the CGF Zero Net Deforestation
Commitment. Retrieved from www.theconsumergoodsforum.
com/blog/966-implementing-and-scaling-up-the-cgf-zero-netdeforestation-commitment
Gan, L.T. & Cai, H. (2017)
Calculating GHG Emission in Oil Palm Using PalmGHG. The Planter,
Kuala Lumpur, 93 (1092): 167-176 (2017).
United Kingdom Government. Department for Environment, Food
& Rural Affairs. (2017, February)
UK statement on sustainable palm oil: final progress report.
Retrieved from www.gov.uk/government/publications/ukstatement-on-sustainable-palm-oil-final-progress-report

RSPO. (2017, June 29)
Promising growth in sales of physical CSPO. Retrieved fromwww.rspo.org/news-and-events/news/promising-growth-in-salesof-physical-cspo

United Nations Development Programme. (2015)
United Nations New York Declaration on Forests: Declaration andAction Agenda. Retrieved from www.undp.org/content/undp/en/
home/ourwork/sustainable-development/natural-capital-and-theenvironment/biodiversity-and-ecosystems-management/new-yorkdeclaration-on-forests.html

RSPO. (2017)
Terms of Reference for Members of the RSPO P&C Review Task
Force 2017. Retrieved from www.rspo.org/principles-and-criteriareview

WWF-Malaysia. (2016, August)Sustainable Consumption Talk: WWF-Malaysia Event Report.
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RSPO. (n.d.)
PalmGHG calculator. Retrieved from www.rspo.org/certification/
palm-ghg-calculator

46 RSPO IMPACT UPDATE 2017

CONTACT THE RSPO
We value the feedback of our stakeholders.
If you have questions about this report or our impact, please contact:
Impacts and Evaluation Division
Roundtable on Sustainable Palm Oil (RSPO) Secretariat
Unit A-37-1, Menara UOA Bangsar
No.5 Jalan Bangsar Utama 1
59000 Kuala Lumpur
T: +603 2302 1500          E: rspo@rspo.org
www.rspo.org

The RSPO is an international non-profit organisation formed in 2004 with theobjective to promote the growth and use of sustainable oil palm products throughcredible global standards and engagement of stkeholders.

IMPACT UPDATE 2017

Impacts and Evaluation Division

RSPO SECRETARIAT

Unit A-37-1, Menara UOA Bangsar
No.5 Jalan Bangsar Utama 1
59000 Kuala Lumpur
Malaysia
T: +603 2302 1500
E: rspo@rspo.org